Sports Direct is in talks with Tesco with a view to taking space in its
supermarkets, according to reports.

The sportswear retailer, run by Mike Ashley, could take on the mezzanine floors in three of Tesco’s British hypermarkets.

There are also plans to occupy space next to supermarkets or in nearby retail parks, the Financial Times reported.

A similar joint-venture has already been attempted in the Czech Republic. Tesco cut the size of a supermarket in the country from 80,000 square feet to 50,000, with Sports Direct taking the majority of the excess space.

Earlier this year, Tesco chief executive Philip Clarke called an end to the so-called “space race”, vowing to scrap 100 major store developments and cutting back on opening new stores. Mr Clarke said he would focus on the internet.

Tesco plans to add 1.26m square feet of shopping space in the UK in this financial year, down from 1.31m square feet last year.